As per the recent guideline of ESIC, new companies who have obtained online registration numbers under ESI through the MCA (Ministry of Corporate Affairs) Portal and whose number of total employees is less than 10 need to apply for Dormant status. And it is mandatory to update their establishment on the ESI website through user ID ‘Employer login’.
Guideline issued by the ESIC to comply as under ESI act-
- To comply with various provisions of ESI, companies need to reach the threshold limit of employees, such as 10 or more employees need to be there.
- If a threshold employment limit is reached, then required to submit the details of employment, then the unit will immediately activate, and the employer can start compliance without any delay or fault.
- If a threshold employment limit isn’t reached, then choose the grace period (maximum 6 months) that will help you to lead classification of units as Dormant Status.
- The establishment/factory who registered through the MCA portal is found unrecoverable as per the statutory compliance of ESI, then the establishment can login on the website to change or update the Dormant Status mode.
- Such establishments are not liable to make compliance for the next grace period or till the date of reaching the threshold of ESI coverage, whichever is earlier.
- In case, the employment threshold is reached before the completion of 6 months, then the employer has to update and immediately have to follow compliance without delay or waiting for a notice period.
- In case an employer doesn’t update or fail to update the status of establishment\factory, then the registration will be automatically activated and the company will have to start compliance under ESI.
- If employers will not follow compliance under the ESI Act, then may action will be taken against the defaulting companies.
To know more details, you can download the circular – ESI Online Registration by MCA Portal